3 different wages per hour: allowances you receive.

Jul 2, 2017


Some of you starting to work in Japan, might get confused with the system of calculation of your wages per hour.

In Japan, there are three different wages based on Labor Standards Act, and what time, and how long hours you work is the point of it. We’d like to explain you the main 3 different wages which are Regular hour, over-working allowance, and mid-night work allowance.

 

First, Regular hourly wage is the basement of your payment, and it is settled to all the part timers.

This is very simple. Your wage per hour times working hour is the total salary on that day. For example, your hourly wage is 1000yen, and you work 5 hour, the total salary of the day is 5000yen.

 

 

Secondly, we have the system of extra payment for over work.

In addition to Regular hourly wage, you will receive at least 25% of extra payment if your working hours are over 8hours a day, or 40hours a week.

Let’s assume your working hour on a day is 9:00 to 19:00, your hourly wage is 1000yen, and you have 1 hour beak time. From 9:00 to 18:00, your payment is 1000yen and actual working hour is 8 hours, so 1000×8=8000yen. From 18:00 to 19:00, you will be paid extra payment because you are already working 8 hours, and this 1 hour is counted as an over-time work. The calculation comes like the formula below.

1000×1.25×1=1250yen.

Therefore, your total salary on the day is 8000yen+1250yen=9250yen.

 

Lastly, mid-night work allowance is one of the extra payment based on Labor Standard Act.

Same to the percentage of extra payment for over work, you have right to be paid at least 25% of extra payment.

This allowance is applicable to the hour between 22:00 to 5:00.

Here we show you the example.

If your regular wage is 1000yen and you are working from 19:00 to 23:00, your salary on the day is 4250yen.

From 19:00 to 22:00, your payroll is calculated based of Regular wage, so 1000×3=3000yen. From 22:00 to 23:00, mid-night allowance is added to your Regular wage. 1000×1.25×1=1250yen is your hourly wage in this hour.

 

To conclude, mainly, there are 3 different hourly wage depend on what time and how long hours you work; Regular hour for Regular wage, and 25% or more is added on your Regular wage as over-working allowance or mid-night work allowance.

This is very important to know if you are going to start working in Japan. Because to be payed these allowance is the right for all the worker, and employer has responsibility to follow the rules of Labor Standards Act.

 

Good luck to you who are trying to find a job in Japan, and we hope this article helps you somehow.

 

 

Ayumi

 

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